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21 Functions of Travel Agencies and Tour Functions of Travel Agencies and Tour Operations MODULE – 6A Travel and Tour Operation Bussiness 21 FUNCTIONS OF TRAVEL Notes AGENCIES AND TOUR OPERA- TIONS Travel agents and tour operators play a major role in boosting tourism growth across the globe. They are today accepted as crucial component of travel and tourism industry. They contribute to revenue generation through travel trade operations by bringing together clients and suppliers. According to an estimate, they account for 70% of domestic and 90% of international tourists traffic globally. In this chapter we will discuss the major functions of travel agencies and tour operators such as marketing and publicity, booking of tickets, itinerary preparation, designing of tour packages, processing of travel documents, travel insurance, travel research, conducting tours etc. OBJECTIVES After studying this lesson, you will be able to: z explain the importance of Marketing and Publicity; z explain the functioning of the following, Reservation of Tickets, Reservation of Hotel Rooms, Reservation of Ground Services, Selling Cruise Package; z conduct research, training and development of marketing of tourism; z analyse the relevance of Corporate Social Responsibility; z design Package Tours; z conduct FIT, GIT and FAM Tours; TOURISM 13 MODULE – 6A Functions of Travel Agencies and Tour Operations Travel and Tour Operation Bussiness z to provide Travel Information; z coordinate with Public and Private Tour Organisations and z appreciate the role of Disaster Preparedness 21.1 MARKETING AND PUBLICITY Marketing and publicity of tourism products in general and tour packages and Notes other services in specific is one of the major functions of travel agencies and tour operators. They involve in promoting and marketing all types of travel services such as tour packages, hotel services, air services, car rental services, travel insurance etc. They use both print and electronic-media for marketing and publicity of their products. It is important to note that they play a vital role in marketing and publicity of destinations, attractions and other components of destinations. While playing hard in marketing their products, they also play the role of ambassadors of destination image and brand building. Marketing and publicity can bring rather unknown destinations on the tourist map. Now-a-days popular tourist spots are getting overcrowded. So, people are moving to unexplored areas. This trend can provide employment opportunities to the people in rural and remote areas. Travel agencies and tour oeprators should be truthful in marketing and publicity. 21.2 RESERVATION OF TICKETS Travel agencies and tour operators sell a variety of products but reservation of tickets is still one of their sources of revenue. Reservation of airlines tickets, railway tickets, shiplines and bus tickets can be done either at agency counters or through reservation agencies available online these days. Due to stiff competition amongst airlines and low cost carriers in India and globally to an extent airlines are working on zero margin commission for travel agencies. In the recent years slowly the scenario is changing and online travel agencies are selling tickets online. Global Distribution Systems have changed the way ticketing used to be. ACTIVITY 21.1 Have you ever tried booking a ticket online? Try this as part of your activity. Visit IRCTC website, create a log in id and use the given password and reserve a ticket to any station. Do not worry, you can always cancel the booked ticket if you don’t want to travel. 14 TOURISM Functions of Travel Agencies and Tour Operations MODULE – 6A Travel and Tour Operation 21.2.1 Reservation of Hotel Rooms Bussiness Earlier Computer Reservation System (CRS) and now Global Distribution Systems have enhanced the way reservation of hotel rooms is done. Hotels are able to provide all the necessary information in advance such as category of hotel, type of rooms, facilities and services, meal plans, tariff and seasonal offers. Clients can search, compare, choose and book a room of their choice. One can also make online payments through internet banking or debit/credit cards etc. Specifications of rooms and facilities provided online should be the same as they Notes actually exist. Guests should not feel cheated. The First Indian owned Travel Company Pallonji Katgara & Jamshedji Dastoor established Jeena and company (a shipping and export company) with a startup finance of US$ 75, a small capital in 1900. It then diversified into the travel field with Jeena Tours and Travels in 1920 and became the first Indian - owned travel company. In 1961, Jeena Tours and Travels was integrated with Travel Corporation (India) Pvt Ltd which grew to become India’s largest travel company under the dynamic leadership of the Katgaras. In 1951 Travel Agents Association of India (TAAI) was established setting the tone for organised travel business in India. Prior to TAAI, travel business in India was in the hands of Jeena & Company, Lee and Muirhead India Pvt. Ltd. and N. Jamnadas and Co. Ltd. Out of which Jeena ventured into outbound tours as well. It was only in 1967 that a separate Ministry of Tourism and Civil Aviation was created under a cabinet minister. After that in India for the first time an integrated marketing plan was developed for this trade which has now become an Industry. 21.2.2 Reservation of Ground Services Ground handlers at destinations provide a variety of ground services to tourists like cars, coaches, caravans, entertainment entries, guides, interpreters etc. In most cases reservation of these services may be done as part of a package tour but at times, individuals can also avail the facility reservation of these ground services these days as per their requirement either at the counters of service providers or online these days. TOURISM 15 MODULE – 6A Functions of Travel Agencies and Tour Operations Travel and Tour Operation Bussiness 21.2.4 Selling Cruise Package Cruises operate on the water hence sometimes have the disadvantage of direct sales but so long as intermediaries are available it hardly matters where you operate from. Travel agencies and tour operators are actively selling cruise packages to prospective clients. Most of these agencies are promoting and marketing cruise packages with a variety of offers and freebies to attract tourists. Notes Functions of Travel Agencies and Tour Operators 1 Marketing and Publicity Package tours Destinations, attractions and other Services 2 Reservation of Tickets Airlines Railways Buses Passenger ships Events 3 Accommodation Reservation Hotels Resorts Motels Homestays etc. 4 Reservation of Ground Cars Services Coaches Caravans Entertainment entries Guides, interpreters 5 Itinerary Preparation Planning and preparing various types of itineraries and checking feasibility 6 Tour Packaging and Costing Dealing with vendors, Market research Costing and pricing Designing of package tours Promotion and selling 16 TOURISM Functions of Travel Agencies and Tour Operations MODULE – 6A Travel and Tour Operation 7 Travel Information and Handling enquiries Bussiness Documents Processing Counselling Travel and destination information Passport VISA Customs Notes Currency Health and security checks permits Immigration etc. 8 Research, Training and Market study Development Customer behaviour Training man power Upgrading skills New product development 9 Travel Insurance Personal Baggage Travel break-up Accidents etc. 10 Event management Meetings Incentive travel conferences, conventions, exhibi- tions, seminars symposiums etc. 11 CSR Corporate Social Responsibility towards stakeholders, clients, community and quality ethics ACTIVITY 21.2 Visit a nearby travel agency/ tour operator and find out the formalities for travelling to a foreign country. Ask them to show the copies of the travel documents and collect copies and note the details. TOURISM 17 MODULE – 6A Functions of Travel Agencies and Tour Operations Travel and Tour Operation Bussiness INTEXT QUESTIONS 21.1 1. What type of methods are being used for marketing and publicity of tourism products? 2. Which technology has enhanced the speed of reserving tickets? 3. What are the modes of online payment? Notes 4. Expand CRS. 5. Name the first Indian owned travel company. 21.3 PREPARATION AND PROCESSING OF TRAVEL DOCUMENTATIONS There are listed documents required while going on a tour, especially on a foreign trip. Travel documents such as passport, VISA (It is an endorsement on a passport indicating that the holder is allowed to enter, leave, or stay for a specified period of time in a country), health certificates, vaccination, insurance, foreign currency etc. It takes time to get the VISA clearance from the concerned embassies. All such functions are handled by travel agencies and tour operators to help their clients a hassle free travel. Travel documents are very essential. If they are not in proper order, tourists may find themselves in big trouble, particularly on foreign trips. They may not be allowed to enter the country if documents are not in proper order. 21.3.1 Budgeting and Allocation Financial management of any organisation or firm is quite an important function. Budgeting for different activities and overall smooth functioning is crucial part of management. They do a proper annual budgeting and specific a programme budgeting prior to allocation. Then funds, man power and other resources are allocated on the lines of budgeting. Without proper budgeting and sufficient allocation of resources, it is hard to imagine the sustenance of any organisation. 21.3.2 The Research and Development Large travel firms usually have their own research and development departments. A lot of R & D activities are undertaken by them such as market research studies, itinerary feasibility, designing new package tours, new product development, customer preference studies, branding strategies, costing of products and so on. Though it may not be possible for smaller firms to do research, they too are involved in a limited research and development at the local level. R & D helps in the sustainability of firms, enhances market expansion and better service to the tourists.
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